Customised ERP: Advantages and Disadvantages

Q: What is the difference between customisation and extension?

ERP customisation involves making changes to the system's code. This can be a complex and time-consuming process, but it allows for more extensive changes to the system. ERP extension involves adding new functionality to the system without making changes to the system's code. This can be a more straightforward and faster process than ERP customisation, but it is limited to adding new features that are already supported by the ERP system. ERP extensions are often used to add new integrations or to provide additional reporting capabilities.

A custom enterprise resource planning (ERP) system is the ideal answer if you want to manage your organisation effectively and efficiently. Custom ERP systems allow firms to collect, store, and analyse data from several departments in a single database, making it easier for executives to oversee all basic business processes. Furthermore, the use of such software optimises a variety of operations.

While there are numerous commercially accessible systems, custom ERP development assures that you have a solution that is specifically matched to your needs. In this article we will talk about customised ERP solutions, their advantages and disadvantages, as well as about fully custom ERP systems and their development process.

When You Go For Off-The-Shelf ERP Software

Today, there are numerous off-the-shelf ERP solutions available from companies like Oracle, Microsoft, Infor, SAP, IQMS, Sage, Epicor, Netsuite, and many others. For some businesses, the software that comes with the package is completely adequate. Others, on the other hand, choose to have their software customised by a specialised development firm. Now let’s look at customised ERP pros and cons.

Advantages of Customising Your ERP

Control

The goal of ERP software is to satisfy the needs of your company. And one-size-fits-all software may not fully meet them. However, when you have a custom software development company working on your platform, you have complete control over what it does and offers. You can request that the developer configure a solution that is personalised to your requirements — just how you want it.

Some off-the-shelf software may have capabilities you don’t require and lack those you do. Customisation can help with this by utilising only the elements that are crucial to your organisation and industry, as well as to how it operates. You can poll your leadership team and departments to discover the most important components for business success.

Competitive Advantage

Because no standard ERP system can fully solve all of your organisation’s difficulties, customising your software is frequently the solution. After all, the ultimate goal is to get a competitive advantage in your sector, and if you don’t attempt to build a system that allows you to view the broad picture and all the data around your processes, you’ll be left behind.

Meanwhile, your competitors utilising ERP software that maximises their potential and assists them in meeting their objectives will quickly get ahead of you.

Scaling

Companies are always expanding. You need an enterprise-wide solution that will scale with you as you hire additional people and introduce new processes and procedures in your organisation.

If you utilise a customised approach, your software development team will scale the solutions to meet you and your team where you are, modifying the software to accommodate new customers, services, and requests accordingly.

Even the architecture and infrastructure of the ERP system can be changed as your needs grow and progress.

Less Dependency on ERP Software Providers

When you use standard, off-the-shelf software, the software provider owns the licence. If you’re using a SaaS model, you’ll almost certainly be paying a monthly fee to use the ERP system. However, if you have a platform customised just for you, the software provider will only have control over its basic features. All the new features will be under your own control.

Disadvantages of ERP Customisation

Missing Core Features of an Off-the-Shelf ERP Solution

You may ignore vital aspects of your existing programme and lose them under unneeded bells and whistles if you are too focused on customising your product. It can also be difficult to install regular upgrades and updates, which are frequently required to keep the platform running efficiently. This may interfere with the software’s basic functionality.

Bugs

This is less dangerous if you deal with a reputable, high-quality development business, but the more features you include in your product, the more likely flaws will be introduced. This is simply the nature of software development: the “fancier” and more intricate the product, the more likely it is that faults will appear.

Extra Costs

Adding more functionality to a current product will cost more than merely utilising the software as is. In general, the degree to which you choose to customise ERP software will be proportional to the amount you pay. That implies that if you want considerable customisation and a slew of new features, you may have to pay a fortune.

ERP Solutions

Existing ERP Solutions You Can Customise

Here are some examples of ERP systems you can customise to your business needs:

SAP S/4HANA is a popular ERP solution that can be customised to meet the specific needs of any business. For example, SAP S/4HANA can be customised to integrate with other business systems, get new features, or have a different user interface.
Oracle NetSuite is another popular ERP solution that is known for its flexibility and scalability. You can customise Oracle NetSuite to meet the needs of businesses of all sizes.
Microsoft Dynamics 365 is a cloud-based ERP solution that offers a wide range of features and customisation options. Customised Microsoft Dynamics 365 is suitable for the needs of businesses in a variety of industries, including manufacturing, retail, and healthcare.
Infor LN is an ERP solution that is known for its strength in manufacturing and supply chain management. Infor LN can be customised to suit businesses from various industries.
Epicor ERP is an easy-to-use and scalable ERP that can be customised to meet the needs of businesses of all sizes, from small businesses to large enterprises.
Acumatica is a cloud-based ERP solution that offers a wide range of features and customisation options. Acumatica is known for its ease of use and affordability, and it can be used by businesses of all sizes.
Sage 100 is an ERP solution mostly preferred by businesses from accounting and finance. However, Sage 100 can be customised to meet the business needs of companies from many different industries.
Xero is a cloud-based ERP solution that is known for its ease of use and affordability. Xero is a good choice for small businesses that are looking for an ERP solution that is easy to set up and use.

Custom ERP Solutions

Fully custom ERP systems, as opposed to off-the-shelf solutions, are built to meet the specific needs of a certain company. A custom ERP provides a complete solution that unites all business processes into a single platform.

People often think that custom and customised ERP systems are the same thing, however they are not. Unlike customised ERP systems, custom ones are built from the ground up in accordance with specific needs. Despite the fact that custom ERP is more expensive, people often choose exactly this option because of the higher level of flexibility and integration with other systems.

Bamboo Agile, as an ERP developer, offers a full range of services from consulting to solution deployment, as well as customisation services. Each of our team members is educated in their field and can provide expert guidance regardless of where you are in the custom ERP software development cycle. Our trusted professionals all have extensive experience in ERP development, and our teams provide solutions for businesses of different sizes and industries.

Human Resources

One of the ERP systems we can develop or customise is a human resources ERP (HRM ERP). It is a software system that integrates all of the human resources (HR) processes of an organisation into a single system. This includes tasks such as recruiting, onboarding, training, performance management, compensation, benefits, and payroll.

HRM ERP systems can help businesses to improve their HR efficiency, productivity, and compliance. They can also help to improve employee engagement and satisfaction.

Here are some of the benefits of using an HRM ERP system:

Improved efficiency: HRM ERP systems can help to automate HR processes, which can free up HR staff to focus on more strategic tasks.
Increased productivity: HRM ERP systems can help to streamline HR workflows, which can lead to faster processing times and improved accuracy.
Enhanced compliance: HRM ERP systems can help businesses to stay compliant with government regulations, such as those related to payroll and benefits.
Improved employee engagement: HRM ERP systems can help to improve employee engagement by providing employees with access to important HR information and services.
Better decision-making: HRM ERP systems can help businesses to make better decisions about HR matters by providing them with insights into their workforce data.

Financial Management

Another ERP system we’d like to mention is a financial management ERP. It is a software system that gathers all of the financial management processes into one system. Among the features included into this type of ERP system are accounts payable, accounts receivable, general ledger, budgeting, forecasting, and reporting.

Financial management ERP systems improve businesses financial efficiency, decision-making, and provide insights into financial performance.

All the benefits mentioned for HRM ERP are also applicable to financial management ones.

Custom ERP and Off-The-Shelf Customisable ERP Comparison

When to Develop a Fully Custom ERP System

There is a list of difficulties that indicate you may need a bespoke system to swiftly decide whether your firm genuinely requires a custom ERP.

Your present software tools do not communicate effectively with one another;
Custom reports cannot be generated by your ERP;
Mobile users are unable to access your software;
You struggle to meet the needs of your clients;
You don’t have a working CRM system.

If you are experiencing these challenges in your present business operations, bespoke ERP may be the choice for you.

Developing Your Custom ERP Software with Bamboo Agile

Now let’s look at the process of developing ERP software with Bamboo Agile.

Requirements

The first step in ERP development is to gather requirements from users within your business. This includes understanding the current business processes, identifying the pain points, and determining the desired future state.

For example, a business might want to implement an ERP system to improve its inventory management. In this case, the requirements gathering process would involve understanding how the business currently manages its inventory, identifying the problems with its current system, and determining what it would like to achieve with a new system.

Design & Prototyping

Once the requirements have been gathered, the next step is to design the ERP system. This includes designing the system architecture, the user interface, and the business processes. The design phase should also include prototyping the system to ensure that it does meet those requirements.

Continuing the example of the ERP for inventory management, you might want to create a prototype to test how the app fares in an actual warehouse and get feedback from its first users.

Development

The development phase is where the full ERP system is built. This involves coding the system, testing the code, and integrating the software with other systems. The development phase can be a long and complex process, and it is important to have a well-defined development timeline in place.

QA & Testing

Once the ERP system has been developed, it needs to be tested to ensure that it operates well and that it is free of errors. The testing phase should include both functional testing and non-functional testing. Functional testing ensures that the system meets the requirements, while non-functional testing ensures that the system is reliable, scalable, and secure. It’s also advisable to use a combination of manual testing and automated testing to ensure that the system is thoroughly tested.

Production

Once the ERP system has been tested and approved, it is ready to be rolled out into production. This involves deploying the system to the production environment and training the users on how to use the system. The production phase is when the ERP system is used by business users to perform their day-to-day tasks. For example, that’s when a business might create a training plan for its users and provide them with access to documentation and support.

Maintenance

The final stage of ERP development is maintenance. This includes fixing bugs, adding new features, and making changes to the system to meet the changing needs of the business. The maintenance phase is an ongoing process that ensures that the ERP system continues to meet requirements and remains secure. It’s usually handled by a dedicated team of developers who are responsible for maintaining the system.

Conclusion

With so many procedures, resources, and data in circulation, organisations sometimes struggle to keep track of everything. But you can always develop your own custom ERP system to avoid this occurring in your organisation. And instead of gathering your own development team for this single issue, consider entrusting the development process to a software contractor with an experienced team of professionals.

Bamboo Agile can create a comprehensive ERP system that combines all of your data, procedures, and resources into a single platform. Furthermore, regardless of the industry, our teams know how to properly suit your individual requirements and needs. To get more information regarding our collaboration, simply fill out the form to get a free consultation with our professionals and lose the last pieces of uncertainty about your future project!

FAQ

What is ERP Customisation?

ERP customisation is the process of modifying an ERP system to meet the specific needs of a business. This can involve changes to the system’s functionality, user interface, or reporting capabilities.

Why is ERP customisation important?

ERP customisation is important, as it can help you:
1. Meet the specific needs of your business
2. Improve the system’s functionality
3. Improve the user’s interface
4. Improve the system’s reporting capabilities

What is the difference between customisation and extension?

ERP customisation involves making changes to the system’s code. This can be a complex and time-consuming process, but it allows for more extensive changes to the system.

ERP extension involves adding new functionality to the system without making changes to the system’s code. This can be a more straightforward and faster process than ERP customisation, but it is limited to adding new features that are already supported by the ERP system. ERP extensions are often used to add new integrations or to provide additional reporting capabilities.

What are the pros and cons of implementing a system without customisation?

Here are some of the pros and cons of ERP implementation without customisation:

Pros:
1. Faster implementation. Implementing an ERP system without customisation can be faster than implementing a customised system because of no need to go through the process of customising the system to meet the specific needs of the business.
2. Lower cost. Off-the-shelf ERP systems without customisation can be less expensive than implementing a customised one since you don’t have to pay for the development or customisation of the system.
3. Less risk. Implementing an ERP system without customisation can be less risky than implementing a customised one. There is less chance of introducing errors into the system if there is no customisation involved.

Cons:
1. Less flexibility. An ERP system that is not customised may not be able to meet the specific needs of the business. This can lead to problems down the road if the business’s needs change.
2. Less integration. An ERP system without customisation may not be able to integrate with other systems that the business uses. This can lead to data silos and make it difficult to get a complete view of the business.
3. Less user adoption. Employees may be less likely to adopt an ERP system that is not customised to their needs. This can make it difficult to get the full benefits of the system.